Archive for July 31st, 2009

In the travel industry, there is always a great deal of attention paid to the concept of “value.”  Value is not simply about the cost of a commodity, but rather the perception of how the product measures up to its price.  While $75.00, for instance,  might not be considered an inexpensive price for a day’s entertainment, consider just a few of the many things included with that one-day admission to a Disney Park: 

• a safe, clean, well-planned and meticulously-maintained environment with extraordinary buildings and exquisite grounds and facilities, representing hundreds of millions of dollars in infrastructure
• countless rides and attractions
• the ability to meet and interact with iconic characters
• several world-class parades
• Broadway-quality stage shows
• elaborate fireworks
• numerous musical and dramatic performances throughout the day featuring singers, dancers, actors, jugglers, magicians, acrobats, artists, and musicians playing everything from trombones to trash cans
• multiple modes of transportation including bus, boat, train, monorail, even a horse-drawn trolley
• thousands of smiling, helpful employees dedicated to guest satisfaction
• twelve to fifteen hours of enjoyment

When compared with the cost of tickets to special museum exhibits and historic buildings (admission to Biltmore is as much as $59.00), or tickets to concerts (a Boston Symphony Orchestra seat can run up to $115.00; want the best view of a Coldplay concert? try $803.00), plays (lowest price for The Lion King on Broadway, $80.00), and sporting events (standing room only for Red Sox/Yankees – more than $125.00), it begins to look like a bargain.  The $26.00 per day cost of a ten-day base ticket now seems like an absolute steal.

The Walt Disney Company has just announced that third quarter revenues for its parks and resorts reflected a 9% decrease.  At the same time, overall attendance numbers for U.S. parks are up 3%; something quite obvious to anyone who has tried to get a room or dining reservation this year.  A number of outstanding promotions during 2009 have underpinned these surprisingly strong figures at a time when many travel products are showing much higher losses. 

More interesting are the comments from Disney executives, who spoke about the visitors themselves.   It seems that these special offers have attracted an entirely new guest demographic, a group who had never before visited and would never have come if not for the promotional pricing.  These specials have also enticed many past guests to take an additional, unplanned Disney vacation. 

But, most tellingly, research revealed that there has been a positive change in visitors’ perceptions of the “value” of a Disney vacation, something that loyal Disney guests have long appreciated.  There is the expectation that this renewed sense of the intrinsic worth of the Disney experience will result in return visits.  While the term “inexpensive Disney vacation” may well be an oxymoron, there are many who feel there is no better vacation value.